working the fringe - directadvisors · 3/18/2018 · directadvisors.com working the fringe | 3 it...

by Jeffrey Bennett

DIRECTADVISORS.com

Prevailing Wage Bona Fide Fringe Benefit Plan Strategies for Merit Shop Contractors

WORKING THE FRINGE

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Brief History/Background . . . . . . . . . . . . . . . . . . . . . . 2

Bona Fide Benefit Plan Legal Requirements . . . . . . 3

Bona Fide Benefit Plan Advantages . . . . . . . . . . . . . 7

Bona Fide Benefit Plan Strategies . . . . . . . . . . . . . . 10

Factors to Consider When Choosing

a Bona Fide Benefit Plan Provider . . . . . . . . . . . . . . .13

How We Can Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

©2015-2018 Jeffrey Bennett

WORKING THE FRINGE | 2DIRECTADVISORS.com

INTRODUCTION

Construction companies that contract with the government (federal government, many state

governments, municipalities, school districts, etc.) are subject to a multitude of laws and

regulations. Included among these regulations are special requirements that dictate mandatory

wage and fringe benefit payments commonly referred to as “prevailing wage regulations.”

The fringe benefit portion of prevailing wage regulations are particularly complicated and therefore

often misunderstood and misapplied by contractors (including merit shop companies engaged in

governmental work).

Fringe benefit confusion can lead to:

1. Contractors missing opportunities to bid more competitively

2. Compliance problems that generate large unanticipated liabilities

3. Inferior benefit programs for your company compared to those provided by trade unions

This paper discusses options and strategies on how contractors can pragmatically comply with

prevailing wage regulations, while also potentially creating a competitive advantage that will help

businesses bid more competitively, increase profits and raise employee satisfaction and loyalty.

BRIEF HISTORY / BACKGROUND

Davis-Bacon Act (DBA)

The Davis-Bacon Act was established in 1931 and amended several times, including in 1964, to

include provisions for fringe benefits. The DBA was re-codified in 2002 and is located in 40 U.S.C.

§§ 3141 et seq.

The stated purpose of the Davis-Bacon Act is “To protect communities and workers from the

economic disruption caused by competition arising from non-local contractors coming into an

area and obtaining federal construction contracts by underbidding local wage levels.”1

Following enactment, when the DBA became effective, the United States Department of Labor

determined what was “prevailing” in the location of a given federal contract and required those

rates be paid to any mechanics or laborers working on job sites. Practically speaking, the prevailing

rate historically has simply been what was collectively bargained (the union rate) in a particular

area, leading to criticisms that the DBA protects union workers at the expense of taxpayers.

Regardless of general support or opposition to the DBA, the Act applies to federal government

contracts in excess of $2,000 for construction, alteration or repair of public buildings and public

works in all 50 states and the District of Columbia.

1 “Introduction to the Labor Standards Statutes Coverage.” Prevailing Wage Resource Book. U.S. Department of Labor


It is important to note that 29 C.F.R. § 5.2k requires the application of the Davis-Bacon Act when

work is “…carried on directly by authority of or with funds of a federal agency to serve the interest

of the general public regardless of whether title thereof is in a federal agency.” In other words, if

there is federal money providing even part of the funding on a project, it may be subject to the

Davis-Bacon Act and therefore prevailing wages and fringe benefits must be paid.

McNamara-O’Hara Service Contract Act (SCA)

The McNamara-O’Hara Service Contract Act was established in January 1966 and amended in 1972

and 1976. The Act is codified as 41 U.S.C. §§ 6701 et seq.

The SCA is similar to the DBA except it was established to provide labor standards protection

for contractors performing federal service contracts. Examples of contracts covered by the SCA

include security guard services, janitorial services, grounds maintenance and data processing.

The SCA requires the payment of prevailing wage rates and fringe benefits for service employees

working on contracts over $2,500 in all 50 states and the District of Columbia.

State Prevailing Wage Laws and Regulations

Currently 32 states have prevailing wage-type laws and regulations affecting companies that

contract directly with the state or local governments for construction or service-type contracts.

In states that designate only a prevailing wage amount (and not a separate fringe benefit rate)

contractors are commonly allowed to take credit for bona fide fringe benefits payments and

reduce the amount paid towards wages.

Some states’ laws closely mirror the DBA and SCA. However, many states have more restrictive

laws (especially as they pertain to fringe benefits requirements). In our examination of state

prevailing wage laws, we found important nuances in how states define bona fide benefits, grant

or limit credit for benefit programs, and prohibit certain types of common bona fide benefits

(along with other very unusual rules).

Contractors are strongly encouraged to consult with their advisors if they have any doubt about

the rules in the states in which they work.

BONA FIDE BENEFIT PLAN LEGAL REQUIREMENTS

The DBA prevailing wage rate is made up of two components — a basic hourly rate and fringe

benefits rate. The total of both the basic hourly rate and any fringe benefits rate listed in a

wage determination of the contract comprise the DBA prevailing wage requirement for a given

classification. The SCA and state prevailing wage rules are often structured the same (with some

exceptions). For example, the DBA (and some states) allows a contractor to pay more in fringe

benefits with a corresponding reduction in the basic hourly wage. If the wage determination in

a contract included an hourly wage of $20 and a fringe rate of $10, the employer could choose

to provide an hourly wage rate of $17 and a fringe rate of $13.


A contractor’s prevailing wage obligation under DBA, SCA or state laws may be met by

any combination of cash wages and creditable “bona fide” fringe benefits provided for a

covered worker.

As noted earlier in this paper, some states may be more restrictive in the benefits that they allow.

Common fringe benefits that can be

considered bona fide include:

Health insurance

Dental insurance

Life insurance

Disability insurance

Pension / retirement plan

Apprenticeship training

Vacation

Holidays

Sick leave

Benefits that are not considered

bona fide include:

Use of a company truck or other vehicle

Tools

Uniforms

Cellular phone

Travel expenses

Any statutory benefits, such as:

• Workers compensation

• Unemployment compensation

• Social security contributions

Types of Fringe Benefit Plans

All fringe benefit plans fall into two categories, “funded” (29 C.F.R. §§ 5.26-5.27) or “unfunded”

(29 C.F.R. § 5.28).

Funded plans are those where the contractor’s fringe benefit contributions are made

irrevocably (funds cannot revert back to the contractor for any reason) to a trustee or third

party (independent) pursuant to a bona fide fringe benefit fund, plan or program (in writing)

on a regular basis (at least quarterly). These contributions can be credited towards meeting the

prevailing fringe benefit requirement without prior United States Department of Labor approval.

Examples of payments by contractors that can be credited include:

Contractor makes weekly contributions to a health & welfare plan or trust for the provision of

benefits (health insurance, vacation pay, apprentice training, supplemental unemployment, etc.)

Contractor makes quarterly contributions to a retirement plan trust

Contractor pays monthly health insurance premiums to an insurance company

Unfunded plans or programs where the contractor funds certain benefits from the company’s

general assets (rather than by payments to a trustee or third party) are referred to as an unfunded

plan. Vacation and holiday benefits are the most common types of unfunded plans. A contractor’s

reasonably anticipated costs in providing bona fide fringe benefits under such a plan may be creditable

towards meeting the DBA prevailing wage obligations if certain requirements are met, including:

It can reasonably be anticipated to provide bona fide benefits as described in the DBA

It represents a commitment that can be legally enforced

It is carried out under a financially responsible plan or program; and

The plan or program has been communicated in writing to the affected employees


Annualization

Annualization is the one of the most commonly misunderstood concepts in the DBA, SCA and

state laws. However, knowledge about how annualization works, and how it affects contractors’

financial obligations for benefit plans, is critical for all businesses engaged in public work.

As stated in the U.S. Department of Labor Prevailing Wage Resource book, “Annualization is a

computational method used to determine the hourly rate of benefit plan contributions that are

creditable towards a contractors’ prevailing wage fringe benefit obligation on covered projects.”

Because the fringe benefit portion of the prevailing wage is expressed as an hourly amount, the

first step in calculating fringe benefit credit under annualization is to translate benefit cost from an

annual to an hourly rate. This step is somewhat complicated for merit shop contractors because

benefits are seldom purchased at an hourly rate. However, calculating benefit costs on an hourly

basis mirrors how union contractors configure benefits, and since the DBA, SCA and state laws are

designed to level the playing field for union and merit shop contractors, hourly calculations permit

easy analysis and are favored by regulators.

To compute the contractor’s allowable hourly credit towards meeting the prevailing wage

obligation for covered workers on a prevailing wage project, the total annual cost of the fringe

benefits must be divided by the total number of hours individual employees work in a year

(including work on both covered (public) and non-covered (private) work). The annualization

computation must be done for each individual worker.

Annualization calculations for contractors that are subject to a collective bargaining agreement

are simple because they are required to pay an hourly amount for benefits to the union benefit

fund for all hours worked, regardless if they are public or private work. Annualization is a non-issue

for union contractors.

However, annualization can become a tangled web for merit shop contractors that work on both

public work and private work because annualization requires the cost of benefits to be divided

by all hours worked. Therefore, contractors must provide benefits that cost a sufficient amount to

cover the prevailing wage rate across all hours even though hours on private projects worked are

not covered by prevailing wage benefit rules.

Example of a laborer employed by an merit shop contractor:

Total hours worked for the year: 1,500

Total hours worked on public work: 500

Prevailing fringe benefit rate: $20 per hour

Total annual cost of benefits: $15,000 (Medical, dental, pension, etc .)

Annualized hourly credit for benefits: $10 per hour ($15,000 benefit cost/1,500 total hours)


In this example, the contractor has a $10 per hour underpayment of fringe benefits: $20 per hour

prevailing fringe benefit rate — $10 per hour annualized credit. The total underpayment for the

contractor is $5,000 ($10 per hour underpayment x 500 public work hours).

How can the contractor remedy the $5,000 underpayment?

Essentially there are two options.

1. Pay the $5,000 as additional cash wages.

2. Provide additional benefits.

But how much would a contractor need to pay in additional benefits to make up the $5,000

underpayment? Logic would tell you the contractor would need to provide another $5,000 of

benefits to make up for the underpayment. However, providing additional payments for benefits

accelerates the underpayment problem rather than solves it because the annualized credit needs

to be updated by the additional $5,000 contribution.

Total annual cost of benefits: $20,000 ($15,000 + additional $5,000 contribution

for annualization)

Updated hourly credit for benefits: $13 .33 per hour ($20,000 benefit cost/1,500 total hours)

Revised underpayment: $6 .67/hour ($20 per hour fringe benefit rate —

$13 .33 annualized credit)

Total revised underpayment: $3,335 ($6 .67 per hour underpayment x 500

public work hours)

As you can see in this example, even though the contractor computed the underpayment correctly

as $5,000 and provided additional benefits in that amount, the contractor still has a substantial

underpayment because the $5,000 contribution is divided by all of the hours worked (not

just those covered by prevailing wage rate). Subsequent iteration of annualization calculations

perpetuate the underpayment obligation rather than fix it.

So how much will the contractor need to fund in benefits to meet its obligation under the law?

The answer is $30,000 (1,500 hours x $20 per hour). The effect of annualization levels the playing

field between union contractors and merit shop contractors by requiring benefits to be provided

across all hours worked at a cost sufficient to at least equal the hourly prevailing wage rate.

A contractor always has the option of making up the underpayment of benefits by providing the

worker with additional wages equal to the underpayment. In our example, the obvious choice

would be to pay the $5,000 underpayment as additional cash wages, which is substantially less

than the additional $15,000 that would have been needed to get the annualized credit up to the

$20 per hour prevailing rate obligation.


Exemptions from Annualization

Paying the prevailing fringe benefit rate as cash wages is always an alternative to providing actual

fringe benefits, and those payments are never subject to annualization. This applies under the DBA,

SCA and each state examined.

The exemption also applies if the prevailing wage fringe benefit rate is paid as a cash wage and

the employee then voluntarily elects to purchase bona fide benefits through a cafeteria plan (IRS

section 125 Plan). This can be an effective alternative for some contractors if structured properly

and is discussed in more detail below.

The DBA, SCA and some states exempt annualization for contributions made to a defined

contribution retirement plan that provides for immediate participation and essentially immediate

vesting (no more than 500 hours).

Under such plans, contributions are irrevocably made by the contractor to the employees plan

account. Pursuant to the exemption, the contractor may take credit for the full amount of the

contribution even if the contractor makes no contributions to the plan during periods of private

work as long as those contributions are made at least quarterly to the plan or an irrevocable

escrow account.

This exemption can be very helpful and provides for some interesting planning techniques for

contractors that work on projects covered by the DBA and SCA. Unfortunately, only a limited

number of states allow the exemption. It is a common mistake for contractors to assume that this

exception applies to all state contracts. A careful examination of state law is highly recommended

if there is any doubt about the existence of the exemption.

BONA FIDE BENEFIT PLAN ADVANTAGES

Tax Advantages

A contractor can choose between providing the prevailing fringe benefit rate as additional cash

wages or as bona fide benefits. The cost of paying the fringe rate as cash wages can be expensive

since wages are subject to payroll taxes and payroll-based insurance premiums. In most

circumstances this includes FICA, unemployment taxes, workers compensation premiums and

liability insurance premiums. These costs are typically referred to as “labor burden” and can

range between 15%–40% of payroll (depending on rates paid for workers compensation and

liability insurance).

However, contributions of the prevailing wage fringe benefit rate to bona fide benefit plans are

not subject to labor burden cost. This tax advantage can create a very large savings to contractors,

which can result in more competitive bidding.


For example:

Employees also achieve significant savings since contributions to bona fide benefit plans defer

(for retirement plan benefits) or avoid (for insurance premiums) income-based taxes.

To calculate how much your company may be able to save by paying the fringe

benefit rate to a bona fide benefit plan, visit directadvisors .com/prevailingwage

for an illustration .

SCENARIO A:

Paying prevailing fringe benefit rate

as cash wages:

Assumptions:

• The employee base wage is $30 per hour

• Fringe benefit rate is $20 per hour

• An employee works 40 hours per week

• Payroll labor burden is 30%

(payroll taxes, workers compensation,

general liability premiums)

Base wage + Fringe = Total wage

$30 + $20 = $50 per hour

Total wage x labor burden % = Labor burden

$50 x 30% = $15.00 per hour

Base wage + Fringe + Labor burden =

Bid Labor Cost

$30 + $20 + $15 =

$65 PER HOUR

SCENARIO B:

Paying prevailing fringe benefit rate

to a bona fide benefit plan:

Base wage = Total wage

$30 per hour

Total wage x labor burden % = Labor burden

$30 x 30% = $9.00 per hour

Base wage + Labor burden + Fringe

(paid to benefit plan) = Bid Labor Cost

$30 + $9 + $20 =

$59 PER HOUR

NOTE: In this example a contractor would save $6 per hour (over 9%) by contributing

the fringe benefit portion of the prevailing wage to a bona fide benefit plan . A contractor

with 100 employees each working 2,000 hours in a year would save $1 .2 million .


Savings on Overtime Pay

The DBA, SCA and some states do not require an increase in the fringe benefit rate for periods of

overtime as they do with wages.

Satisfy Government Mandates

Federal and state governments often require employers to provide certain benefits to employees.

The Patient Protection and Affordable Care Act of 2010 (ACA) is the best example at the

federal level.

In addition to federal mandates such as the ACA, many states have mandated paid time off

benefits for a variety of reasons such as birth of a child, sick pay, etc.

Health insurance under the ACA and paid time off programs mandated by state or local

governments are all considered bona fide benefits and can be paid for with prevailing wage fringe

benefit contributions unless exempted by state prevailing wage laws.

Offset Cost of Other Benefits

Contractors that choose to pay prevailing wage fringe benefit contributions as cash wages and

also provide certain bona fide benefits are essentially paying for benefits twice. This is common

with employer-provided retirement programs such as 401(k) plans. However, with proper

planning, employers that match employee contributions to a 401(k) plan (or make other types

of contributions to retirement plans) can take credit for that cost against their prevailing wage

fringe benefit obligations. This type of planning generates magnified savings when you take into

consideration the labor burden savings outlined earlier.

Compete with Labor Unions

Utilizing prevailing wage fringe benefit contributions to fund employee welfare and pension

programs can result in benefit programs that make merit shop contractors more attractive for

existing and prospective employees, as properly structured plans can far exceed those offered

by labor unions. For example, union benefit plans are a pool, providing funding for benefits for

existing workers as well as previously retired workers. Union retirement plans are defined benefit

plans that promise a certain benefit at a certain age, but are not tied to the amount that an

individual worker actually contributes. Union retirement plans typically have long waiting periods

before benefits start and long vesting periods that can be punitive to employees.

An merit shop contractor has tremendous flexibility in the design of its benefit programs. Proper

benefit planning can help retain employees and attract potential new employees because benefits

are linked to individual workers.


Increase Employee Morale

Employee benefit programs can be designed to give employees maximum flexibility and provide

income and benefits during periods of time when they need it most. For example, if funded with

sufficient prevailing wage fringe contributions, health insurance premiums can be paid during

periods of layoff. An additional option is to fund Supplemental Unemployment benefits, which

are paid during a layoff and do not affect the amount employees can collect from state

unemployment funds.

BONA FIDE BENEFIT PLAN STRATEGIES

There are a multitude of factors to consider when deciding what type of strategy to implement

to satisfy the fringe benefit requirements of the prevailing wage laws. Some factors include:

The amount of your work that is subject to prevailing wage law

• The more prevailing wage covered work you perform, the less effect of annualization

• The amount of money you can save in labor burden expenses and how that savings

can translate to more successful bidding

• How much money will be available to fund benefits

Which regulations typically cover your work

• DBA, SCA, state laws

• Benefit plans should be designed for compliance with the relevant laws

Demographics / Culture / Seasonality

• How is the workforce organized?

• Worker tenure — frequent turnover vs. long term team

• Do employees work all year or is there a seasonal layoff?

• Do some employees work substantial amounts of prevailing wage work while

others work less or none?

Existing benefit plan structure

• Creative design may be able to complement what already is in place

• Employee cost sharing

Designing the most effective benefit program should incorporate a strategy designed around

analysis of each contractor individually, based on a review of each of the categories identified

above. Solutions for clients can range from sophisticated comprehensive plans to strategic use

of narrowing defined options.


General Strategy Examples:

COMPREHENSIVE MANDATORY-FUNDED TYPE PLAN (MANDATORY PLAN)

For contractors that consistently perform higher than 75% public work

A comprehensive mandatory-funded type plan strategy somewhat mimics a union-type plan

except with much more flexibility and better advantages for the employees. It is most suitable for

contractors that consistently do large amounts of work covered by prevailing wage laws, especially

construction companies subject to fairly high prevailing rates.

Like a union plan, this is a mandatory plan. Employees are automatically enrolled and not given

a choice to participate. They may be given the choice as to which benefits they will subscribe or

enroll in, but the actual decision to fund a benefit plan with prevailing wage fringe contributions

belongs to the contractor.

A mandatory plan is permissible under all of the prevailing wage laws because an employer has

the choice of paying the prevailing wage fringe benefits as additional cash wages or providing

bona fide fringe benefits. Prevailing wage fringe contributions are employer-funded benefits, not

employee contributions.

With this strategy an irrevocable trust fund managed by an independent trustee is utilized to

collect and hold all the fringe benefit contributions that the employer is required to make under

the prevailing wage law. Sub-accounts are established and held in the name of each individual

employee similar to a 401(k) plan. The trust fund becomes the funding vehicle for the various

bona fide benefits that an employee receives.

By segregating fringe benefit contributions in an irrevocable trust, the employer is able to take

immediate credit for the benefits, even though the actual benefits may not be provided until later

(e.g., when health insurance premiums are paid or when pension plans are funded). The actual

underlying benefits offered by the employer are important but secondary to the actual segregation

of contributions in the trust when utilizing this type of plan.

This type of arrangement provides maximum flexibility for the employer and employees.

For example, benefit reserves can be established to provide benefits during periods of layoff

so that insurance coverage is not interrupted.

The employer decides on the bona fide benefits to be offered and funded with the trust fund.

The benefit offerings can be made voluntary to the employees so that they can pick and choose

from a menu that is best for them and their families.2 A retirement plan benefit acts as a catch-all

to collect funds that have not been used for other bona fide benefits.

This type of plan can also be tailored to target certain groups of employees who work the largest

amounts of work covered by prevailing wage laws and eliminate those who don’t, which greatly

helps any issues related to annualization.

2 This should not be confused with an IRS Sec. 125 Cafeteria Plan because the employees are not given the opportunity to opt-out of the Plan and receive wages in-lieu of benefits.


COMPREHENSIVE VOLUNTARY-FUNDED TYPE PLAN (VOLUNTARY PLAN)

For contractors that consistently perform 35% or more public work

A comprehensive voluntary-funded type plan strategy is similar to the mandatory strategy above,

except that it is voluntary and operated as an IRS Sec 125 Cafeteria Plan. A voluntary plan requires

that the employee be given a choice between receiving contributions as part of their cash wages

or as bona fide benefits. The primary advantage of a voluntary plan is that any concerns regarding

annualization are eliminated.

However, with a voluntary plan, the contributions are no longer considered employer contributions.

They are employee contributions which diminish some of the tax advantages described earlier.

The primary challenge with a voluntary plan is convincing your workers to voluntarily enroll.

Without good participation, there is not much savings.

A voluntary plan may be suitable for contractors that split their work more evenly between

prevailing wage covered work and private work.

SELF-ADMINISTERED / CREDIT TYPE PLAN (CREDIT)

For contractors that perform inconsistent amounts of public work

that is typically less than 35% of their total hours .

A self-administered credit type plan can be effective for contractors that do prevailing

wage-covered work infrequently and want to simply take credit for their existing bona fide

benefit offerings.

As we discussed earlier, it is necessary to calculate the hourly credit a contractor can deduct from

the prevailing fringe benefit rate. This needs to be done for each individual employee.

In the example on page 6 the employer was funding health insurance, vacation pay and a

retirement plan. The annualized hourly cost was calculated by dividing the total annual cost of the

benefits by the total number of hours worked to arrive at $10 per hour credit.

If the prevailing wage benefit rate is $10 per hour, the employer will have met its obligation to the

employee. If, however, the prevailing wage rate is higher, for example $20 per hour, the employer

would need to provide an additional $10 per hour in wages to meet the $20 per hour obligation.


Tips:

A contractor may only take credit for their cost of benefits. The contractor may not take credit

for any contributions an employee makes towards the cost of their benefits.

If taking credit for unfunded benefits such as vacation pay, the vacation program or policy must

be in writing and given to all employees. The employee handbook would be the most common

way of communicating this benefit.

When calculating the number of hours an employee will work in a given year, it is permissible

under the DBA to look to the preceding year to determine what is a representative normal work

year. Where benefits are paid on a monthly basis such as health insurance, it is permissible to

look back to the prior month to determine the amount of hours that is representative of a normal

work month.

If the hourly credit is less than the prevailing wage benefit rate, the contractor must either pay

the difference in wages or provide additional benefits. Any contributions towards additional

benefits must be annualized again. The annualization exemption may apply depending on

jurisdiction, which would eliminate the annualization if the fringe benefit rate is contributed

to a retirement plan that is immediately vested.

FACTORS TO CONSIDER WHEN CHOOSING A BONA FIDE BENEFIT PLAN PROVIDER

As you can see, prevailing wage regulations can be complicated (as they pertain to bona fide

benefits) and the strategies to most effectively deal with them in a compliant fashion require

special expertise.

Strategies such as simply taking credit for existing benefit plan payments can usually be

self-administered by the contractor, perhaps with a little help from a knowledgeable accountant

or attorney.

The more advanced strategies involving trust funds require knowledgeable experts with the proper

trust accounting and administrative tools to provide flexibility in the types of benefits to be offered,

timely and accurate statements and reporting, as well as online portals for you and your workers.

In our opinion, the best plan providers and consultants are those that do not have a conflict of

interest in their business model. This means they are providing you with unbiased advice and are

not trying to sell you insurance or other financial products.

A well-designed plan should be able to incorporate any type of bona fide benefit sold by your

existing insurance broker or advisor. A pre-packaged one size fits all solution will most likely be

inferior to a well thought out strategy designed around analysis of contractors individual situation

and goals.

The content of this analysis regarding the applicability of the Davis Bacon Act, Service Contract Act and state laws to contractors engaged in public works projects reflects our best professional judgement of the implications of the law as of the date of circulating the document (September 2015). Readers are cautioned that federal and state rules and regulations regarding these acts constantly evolve. Please be advised that all individuals should consult with their legal and accounting professionals before relying upon the information contained herein. ©2015-2018 Jeffrey Bennett

Consulting Inquiries:

[email protected]

[email protected]

Media Inquiries:

[email protected]

Speaking Inquiries:

[email protected]

421 Loudon Road, Albany, NY 12211

(866) 796-1173 | (518) 362-2119

directadvisors .com

HOW WE CAN HELP

DirectAdvisors, established in 2001 and located in Albany, New York, provides bona fide benefit

plan consulting and third party administrative services to merit shop (non-union) construction

companies that are subject to the Davis-Bacon Act, Service Contract Act and state prevailing

wage regulations. Our clients are located throughout the United States and range in size from

10 to 3,000 employees.

In 2018, our construction company clients will contribute tens of millions of dollars of prevailing

wage fringe benefit contributions to The DirectAdvisors Trust (health & welfare benefits) and

retirement plans managed by our team.

Our solutions are free from any conflict of interest as we do not sell any financial or insurance

products. We work with existing agents, brokers and insurance companies.

Jeff Bennett is co-founder of DirectAdvisors. Jeff is an authority in fiduciary

process and investment management for retirement plans. He has consulted

with merit-shop construction companies for more than 20 years. A former

human resources director, he holds the ASPPA Qualified Plan Financial

Consultant designation. Jeff is an Accredited Investment Fiduciary (AIF) and

Certified Plan Fiduciary Advisor (CPFA). He is also an active board member

of the Albany chapter of Entrepreneurs Organization.

Tom Santa Barbara is co-founder of DirectAdvisors. Tom is an expert in

plan design and fiduciary investment management. For more than 25 years,

he’s provided insights and guidance to commercial enterprises and nonprofit

organizations subject to prevailing wage regulations. Tom is an Accredited

Investment Fiduciary (AIF) and Certified Plan Fiduciary Advisor (CPFA).

He is also an active board member and incoming President of the Empire

State Chapter of the Associated Builders & Contractors.

Member of:

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